Surety completes Ohio fire station after original contractor defaults | Contractor resolves False Claims Act accusations over disadvantaged business status | Construction unaffected as some states roll back or pause reopening
July 15, 2020
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A new fire station has opened in Reynoldsburg, Ohio, after a surety company completed the $3.9 million construction project. The surety stepped in after the original general contractor's voluntary default in 2019.
An Illinois contractor will pay $1 million to resolve allegations that it improperly represented itself as a disadvantaged small business and thereby violated the False Claims Act. The federal government accused the company of intentionally misrepresenting itself and falsifying documents to qualify for contracts on an airport project.
Continuity Planning: Situations & Lessons From the Field A business continuity plan can help to ensure a smooth transition when a company changes hands. This is especially the case if an owner dies suddenly. A formal plan gives the company's family, employees, and customers… and the surety, assurances that the company will be able to stay in business. Read More…
Some states have rolled back or delayed reopening plans because of spikes in coronavirus cases in the recent weeks. However, construction has generally remained unaffected by those changes because many projects are considered essential.
The US Court of Appeals for the 8th Circuit, in St. Louis, has reversed a federal district court decision granting summary judgment to a surety that denied a bond claim over an alleged breach of federal law. The lower court held that the prime contractor in the case had subcontracted more work than federal law allows, but the appeals court remanded the case for further consideration.
The coronavirus pandemic likely will have several long-term effects on construction contracts, two attorneys write. Among such changes are the increased importance of documentation and force majeure provisions' influence on how parties address risk, they write.
Don't miss the July 22 NASBP Virtual Event: Being Present and Connecting Surety in a Digital World
Clockwise from top left: Mendelson, Specht and Mann (NASBP)
Make sure to register for the next NASBP Virtual Event! Join us from 1 p.m. to 3 p.m. Eastern on Wednesday, July 22, for Being Present and Connecting Surety in a Digital World, where you'll see two informative presentations. The first, by Zach Mendelson of EPIC and Mike Specht of INSURICA Southwest, will unveil the new NASBP Producer Communications Toolkit 2.0. They will share their experiences with the Toolkit, and you will learn about new components that will help you talk about surety with stakeholders in the new normal. The second portion of the program will feature a keynote presentation from international presenter and trainer Scott Mann of Rooftop Leadership. Tom Padilla of HUB International and Past NASBP President said this of Mann: "Scott Mann speaks and leads from experiences where life literally depends on connecting ... [T]he lessons you will learn will be well worth every minute you spend to tune in." Register now!
NASBP podcast "Let's Get Surety" discusses what the PPP means for surety companies
Technology can play a crucial role in enhancing construction companies' safety cultures during the coronavirus pandemic, a construction executive says. He offers seven measures to adopt, including online training, an app to track employees' health, and telemedicine services.
If you know you're right, you don't care. You know that sooner or later, it will come out in the wash.
Barbara McClintock, cytogeneticist, Nobel Prize winner
Founded in 1942, NASBP is the association of and resource for surety bond producers and allied professionals. NASBP producers specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.